Business / Taxes / Stock Split: When a company wants to make its shares more attractive and affordable to a greater number of investors, it may authorize a stock split to create more shares selling at a lower price. A 2-for-1 stock split, for example, doubles the number of outstanding shares and halves the price. If you own 100 shares of a stock selling at $50 a share, for a total value of $5,000, and the company's directors authorize a 2-for-1 split, you would own 200 shares priced at $25, with the same total value of $5,000. Announcements of stock splits, or anticipated stock splits, often generate a great deal of interest. Buyers may simply want to take advantage of the lower share price, or they may believe that the split stock will increase in value, moving back toward its presplit price. While 2-for-1 splits are the most common, stocks can be also be split 3-to-1, 10-to-1, or in any other combination. In addition, a company can reverse the process and consolidate shares to reduce their number by authorizing a reverse stock split.
Split Verb Synonyms: crack, cleft, fissure, chink, cranny, slit, slot, crevice, groove, furrow, channel, sulcus, gap, hiatus, lacuna, opening, separation, division, chasm, rift, break, rupture, fracture, slash, gash, tear, rip, rent
Stock Noun Synonyms: pedigree, bloodline, house, dynasty, (line of) descent, genealogy, extraction, roots, lineage, family, ancestry, parentage, breeding, heritage
Stock Adjective Synonyms: livestock, (domestic or farm) animals, cattle, beasts, horses, cows, oxen, sheep, goats
Stock Verb Synonyms: supply, store, inventory, stockpile, reserve, reservoir, cache, hoard, wares, merchandise, goods, selection, assortment, range, variety, array
Business / Finance / Reverse Stock Split: A proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. For example, MORE
Business / Finance / Last Split: After a stock split, the number of shares distributed for each share held and the date of the distribution. MORE